Republican House lawmakers will meet on Tuesday to discuss President Obama’s latest budget counteroffer that reveals more willingness from the White House to work towards achieving a fiscal compromise before the looming “fiscal cliff” which is only 13 days away.
President Obama and House Speaker John Boehner (R-Ohio) met for 45 minutes on Monday morning at the White House amid growing expectations that a fiscal compromise will be reached before the end of the year.
Obama’s latest counteroffer to Speaker Boehner’s week-end proposal includes new compromises that consist of total revenues that are lowered to $ 1.2 trillion from $ 1.4 trillion.
Tax rates on high income earners expand to $400,000, up from the $250,000 level that Obama originally proposed but still well short of the $1 million limit that Republicans have proposed.
Obama’s proposal includes federal spending cuts that total $1.22 trillion, including interest with $400 billion in health related cuts, up from 350,000 billion and a 20% capital gains rate from the current rate of 15%.
It also consists of $130 billion in spending savings due to changes in the CPI (measures inflation), a removal of the extension of the payroll tax cut, and a 2 year extension of the debt ceiling.